HR 1106 - Mortgage Restructuring In Bankruptcy - National Key Vote


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Title: Mortgage Restructuring In Bankruptcy

Vote Smart's Synopsis:

Vote to pass a bill that grants bankruptcy judges expanded powers to alter the terms of mortgages on primary residences.


  • Grants bankruptcy court judges the authority to reduce interest rates or extend the repayment period up to 40 years for mortgages (Sec. 103).
  • Requires homeowners who receive assistance under this act and sell their home within the first year for a profit to pay their lender up to 90 percent of the difference between the sales price and the amount due under their original mortgage (Sec. 103).
  • Prohibits aid to homeowners who are able to meet their original or modified mortgage payments without assistance or who obtained credit through actual fraud (Sec. 105).
  • Amends standards for participation in the HOPE for Homeowners Program by excluding borrowers who intentionally defaulted on their mortgage, who have been convicted of fraud or those who earn more than $1 million (Sec. 202).
  • Raises FDIC depositor insurance to permanently cover $250,000 instead of $100,000 of each deposit at participating institutions (Sec. 204).
  • Establishes a Nationwide Mortgage Fraud Task Force to investigate mortgage fraud in and aid enforcement of mortgage fraud laws (Sec. 302).